VARDMNPOLYBSEVardhman Polytex LtdHighNeutral
Announced Fri, 29 May · 15:09 IST

Outcome of board meeting held on 29.05.2026 interalia to consider and approve the audited financial results for FY 2025-26 is attached

Going ConcernRevenue DeclinePat NegativeEbitda Margin ExpansionNegative Operating CashflowResults View source PDF

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AI summary

Vardhman Polytex Ltd reported FY2026 revenue of Rs. 23,670.39 Lakhs, down 21% from Rs. 28,498.24 Lakhs in FY2025. Net profit after tax fell 48.5% to Rs. 768.13 Lakhs from Rs. 1,492.40 Lakhs. Despite the profit, the company faces serious concerns: net worth is fully eroded at negative Rs. 19,718.10 Lakhs, and the company disclosed it prepared financial statements on a 'Going Concern' basis due to negative equity. Operating cash flow was negative at Rs. 3,033.41 Lakhs. On a positive note, operating margin expanded from 4.18% to 6.01%, and the company raised Rs. 75 Crores via NCDs and Rs. 15 Crores via OCDs, fully repaying Phoenix ARC debt. The textile segment posted a loss of Rs. 337.60 Lakhs while real estate contributed Rs. 2,004.22 Lakhs profit. Auditors issued an unmodified opinion.

Likely market impact

The company is operationally struggling with negative equity and negative cash flows, raising substantial doubt about its ability to continue as a going concern. However, the real estate segment and asset monetization plans provide some recovery hope for shareholders.